Camdessus to Recommend that IMF Commit an
Additional $10 Billion for Mexico,
Raising its Total Commitment to $17.8 Billion

The International Monetary Fund has been informed of the decision
by the U.S. Government to provide additional support to Mexico from
the Exchange Stabilization Fund rather than through the guarantee
scheme previously envisaged. In light of this, Michel Camdessus, IMF
Managing Director, issued the following statement:

"The Executive Board of the IMF will consider tomorrow my
recommendation to approve a stand-by arrangement for Mexico of
$7.8 billion. I expect that this entire amount will be available to
Mexico immediately. In addition, I intend to recommend that the IMF
commit an additional amount of $10 billion under the same terms as
those that apply to the stand-by arrangement, bringing the IMF's
commitment of resources to a total of $17.8 billion. Simultaneously,
we are seeking contributions from a group of central banks and
governments in the amount of $10 billion. The $10 billion additional
resources to be committed would be provided by the IMF to the extent
that contributions of governments and central banks fall short of the
targeted amount.

"The IMF, together with the Federal Reserve, will closely monitor
developments during the next six months to permit Mexico to keep
markets free of any obstacle to convertibility, honor all its
commitments, and to make sure that all needed resources are available
to the Bank of Mexico on a timely basis to allow the smooth working of
markets and the normal carrying out of all transactions.

"All these steps are being taken to allow the Mexican
stabilization program that has been agreed with the IMF to be
implemented fully and to strengthen the climate of confidence needed
for its full success."